Statement 1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries. Statement 2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to accumulated profits at the end of the year. a. Only Statement 2 is correct b. Both statements are incorrect c. Both statements are correct d. Only Statement 1 is correct
Statement 1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries. Statement 2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to accumulated profits at the end of the year. a. Only Statement 2 is correct b. Both statements are incorrect c. Both statements are correct d. Only Statement 1 is correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries.
Statement 2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to
a. Only Statement 2 is correct
b. Both statements are incorrect
c. Both statements are correct
d. Only Statement 1 is correct
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